BTCJPY Trapped Inside Ichimoku Cloud: Major cryptocurrencies including Bitcoin, Ripple, Litecoin and Ethereum have been attempting to erase last week’s losses versus the USD, even though the USD itself was rallying.
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Bitcoin’s surge, in particular, was noticeable as it broke about the 4,000 resistance level and could be aiming to reach the next resistance level of 4,354. However, both BTC/USD and BTCJPY both remain trapped inside the daily Ichimoku cloud moving in an upward channel.
BTCJPY Trapped Inside Ichimoku Cloud – Technical Points
From an Ichimoku Kinko Hyo perspective, we have the first bullish confirmation as the Kijun line crossed above the Tenkan line on Thursday. However, the pair consolidated right below the upper band of the Ichimoku cloud and the 23% Fibonacci retracement level of 470,000 during Thursday’s early New York session.
BTCJPY Trapped Inside Ichimoku Cloud
This comes after Wednesday’s bullish engulfing candlestick formation. As the market finds its direction, we could see another pullback towards the pivot level and 38% Fibonacci of 421,300 before the pair breaks above the cloud. Resistance is set at the all-time high of 550,000. The pair is supported at the 50% Fibonacci retracement level of 380,000.
BTCJPY Trapped Inside Ichimoku Cloud – Fundamental Points
The gains across cryptocurrencies happened as the trend forecaster and commentator Gerald Celente said in a new interview with The Street, that he believes that banks are “afraid” of bitcoin. He believes banks are fearful that bitcoin and crypto-currencies will “take away their business,” going so far as to argue they’re “trying to kill it.”
Moreover, a former principal at Fortress Investment Group is reportedly moving to establish a $500 million hedge fund focused on cryptocurrency and blockchain. According to Bloomberg, he calls the crypto market “the largest bubble of our lifetimes,” and he wants to be a part of it.
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In other news and according to Forbes, China’s ban on Bitcoin and other cryptocurrencies may be temporary. In the long run, things can change when Bitcoin has the potential to replace the yuan in everyday transactions, and as a monetary asset. In the short-term however, things could get ugly with Bitcoin in the region as North Korea appears to be mining the cryptocurrency as well as hacking it.
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